Overseas-related exchange-traded funds were among the worst performers Tuesday, as Asian indices sank overnight.
A day after finishing solidly higher, Hong Kong's Hang Seng Index fell nearly 1%, and Japan's Nikkei 2005 Index slipped 0.2%. Other indices in Thailand, Singapore and Indonesia finished lower as well.
iShares FTSE/Xinhua China 25 Index
fell $10.02, or 6.6%, to $143.05. The
SPDR S&P China
was losing $5.15, or 6.4%, to $75.35. The
PowerShares Golden Dragon Halter USX China
was lower by $1.40, or 5.1%, to $26.39. The
iShares MSCI Singapore Index
was sliding by 49 cents, or 3.7%, to $12.81.
Homebuilders and real estate ETFs were suffering after the latest data on the health of the housing sector. Shortly before the opening bell, the S&P/Case-Schiller Index of home prices showed a 3.2% drop during the second quarter, the biggest decrease since the index began 20 years ago. The release comes one day after a disappointing report on existing home sales and inventories sank homebuilder and real estate ETFs.
iShares Dow Jones U.S. Home Construction
was down 96 cents, or 4.1%, to $22.66. The
SPDR S&P Homebuilders
gave back 78 cents, or 3.2%, to $23.74. The
Ultra Real Estate ProShares
gave back $1.33, or 3.1%, to $41.39. The
iShares FTSE NAREIT Mortgage REITs
was off 66 cents, or 2.2%, to $29.59.
Financial ETFs were also under pressure after Merrill Lynch downgraded
to neutral from buy.
Ultra Financials ProShares
was shedding $2.43, or 4.3%, to $54.25. The
ETF was down $1.46, or 2.7%, to $52.09. The
iShares Dow Jones U.S. Broker-Dealers
was falling $1.17, or 2.3%, to $48.76.
On the other hand, bundled securities following U.S. Treasuries were among few winners of the day, as traders made their way out of equities and moved into bonds. The 10-year note was adding 5/32 in price, yielding 4.55%, and the 5-year bond was up 6/32, yielding 4.29%.
iShares Lehman 7-10 Year Treasury Bond
tacked on 31 cents, or 0.4%, to $83.90. The
iShares Lehman 3-7 Year Treasury Bond
was up 34 cents, or 0.3%, to $102.05. The
iShares Lehman 10-20 Year Treasury Bond
was higher by 38 cents, or 0.4%, to $101.18.